“Market Segmentation and Its Impact on Customer ...

1 Global Journal of Management and Business Research Volume 12 Issue 17 Version Year 2012. Type: Double Blind Peer Reviewed International Research Journal Publisher: Global Journals Inc. (USA). Online ISSN: 2249-4588 & Print ISSN: 0975-5853. market Segmentation and Its Impact on Customer Satisfaction with Especial Reference to Commercial bank of ceylon PLC . By Puwanenthiren Premkanth University of JAFFNA Sri Lanka Abstract - In this competitive commercial world, an organization has to satisfy the needs and wants of the customers, and has to attract new customers, and hence enhance their business. Customer value is considered as a control element for all business strategies. Therefore, every organization has to emphasize on Customer satisfaction. As far as the banks are concerned this phenomenon is very prominent .To carry out this research, defined the Hypotheses as The market Segmentation highly positive Impact on Customer Satisfaction.

2 The Customer satisfaction with market Segment has higher positive correlation This means that high level of four market segment leads to highly increase in the Customer satisfaction. This Co-efficient of determination that the Customer satisfaction in accounted for by market segment. In this connection hypothesis is is market segments and marketing mix has strong Impact on Customer satisfaction. Keywords : market Segmentation , Customer Satisfaction, Commercial bank . GJMBR-A Classification : FOR Code: 150501, 150203 JEL Code: D12, D91, D21. market Segmentation and Its Impact on Customer Satisfaction with Especial Reference to Commercial bank of ceylon PLC. Strictly as per the compliance and regulations of: 2012. Puwanenthiren Premkanth. This is a research/review paper, distributed under the terms of the Creative Commons Attribution-Noncommercial Unported License ), permitting all non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.

3 market Segmentation and Its Impact on Customer Satisfaction with Especial Reference to Commercial bank of ceylon PLC . Puwanenthiren Premkanth Year 2012. Abstract - In this competitive commercial world, an product or service should read the consumers' pulse organization has to satisfy the needs and wants of the then meeting or exceeding the consumer expectation, customers, and has to attract new customers, and hence then only marketing may play any role in market enhance their business. Customer value is considered as a Segmentation . control element for all business strategies. Therefore, every organization has to emphasize on Customer satisfaction. As 33. far as the banks are concerned this phenomenon is very prominent .To carry out this research, defined the Hypotheses The paper of W. Boyd et al. (1994) the results of Global Journal of Management and Business Research Volume XII Issue XVII Version I.

4 As The market Segmentation highly positive Impact on the study reveal that reputation, interest charged on Customer Satisfaction . The Customer satisfaction with market loans, and interest on savings accounts are viewed as Segment has higher positive correlation This means having more importance than other criteria such as that high level of four market segment leads to highly increase friendliness of employees, modern facilities, and drive- in the Customer satisfaction. This Co-efficient of determination in-service. that the Customer satisfaction in accounted for by A study by Clarkson et al. (1990), suggests that market segment. In this connection hypothesis is the characteristics and financial service requirements of is market segments and marketing mix has consumers vary with age, and that these differences strong Impact on Customer satisfaction. Keywords : market Segmentation , Customer could be used in developing marketing strategies for Satisfaction, Commercial bank .

5 Such services. Marla Royne Stafford (1996) stated that demographics continue to be one of the most popular H. and well-accepted bases for segmenting markets and aving multi perspective on a concept is a power customers. Even if others types of Segmentation full source to capitalize the knowledge on a variables are used a marketer must know and particular concept. According to that the concept understand demographics to assess the size, reach and of market Segmentation will be illustrated in the following efficiency of the market . The general conclusion of this manner. study is that there is a significant relationship between market Segmentation is no accident, but a demographics characteristics the service quality result of careful planning and execution. perception. However, for income the test statistic was Through above phrase we can smell an initial not significant.

6 Idea about what is meant by the term market The psychographic Segmentation , in the literature, Segmentation . There are so much of strategies and has been extensively researched. For example Beckett techniques are available for an entrepreneur to segment et al. (2000) presents and develops a model through the market . But this research concentrates on how to which attends to articulate and classify consumer tune the market Segmentation in ensuring achieving the behaviour in the purchasing a range of financial efficient Customer satisfaction. products and services. Using and placing the two So that research topic falls into marketing field. principal factors that motivate and determine individual In growing competitive world marketing plays a vital role contracting choices, namely involvement and in every business firm. Any firms in any industry realized uncertainty, on to a simple continuum running from high that marketing management is an essential part in their to low it is possible to construct a two-dimensional business success.

7 A well prepared counter argument is matrix of consumer behavior. also believed by lot expert against to previous one. Harrison (1994) concludes that the traditional Marketing is not a magic tool which means a firm which Segmentation variables of age, stage in the family life produces worst goods can't become as a market leader cycle and social class have provided little insight into the by using effective market segmetation. The financial services Customer behavior. In order to take full firstrequirement for market Segmentation is particular advantage of the factors which could affect take-up and Author : Former Assistant Lecturer University of Jaffna JAFFNA Sri usage of financial services, Harrison develops a multi- Lanka. E-mail : dimensional model. The analysis has suggested four 2012 Global Journals Inc. (US). market Segmentation and Its Impact on Customer Satisfaction with Especial Reference to Commercial bank of ceylon PLC.

8 Customer segments for financial services on the basis of behavior as it is mediated by the importance of a customers' own perceived knowledge, confidence and particular bank service to a particular Customer and by interest in financial maturity, defined by the type and the nature of competitive offerings for different types of complexity of financial services currently in use. Each of banking services available from other banks. Gil et al. the four segments is distinct in terms of the financial (2007), in their research exhibited that services objectives exhibited, motivations for financial services encountered directly and significantly affect perceived usages and attitudes and behaviour towards financial service value which is the final antecedent to Customer services. satisfaction in banking industry. Machauer and Morgner (2001) prefer In the call center industry the empirical research Segmentation by expected benefits and attitudes could for SERVQUAL model appears to be scarce.

9 Enhance a bank 's ability to address the conflict between (2002) conducted a research to assess a individual service and cost-saving standardization. case call center using SERVQUAL model. They found Year 2012. Using cluster analysis, segments were formed based on that as a Customer never comes into contact with the combinations of Customer ratings for different attitudinal physical appearance of a call center, the area covered dimensions and benefits of bank services. The clusters by the tangibles criteria does not apply. Via the generated in this way were superior in their homogeneity telephone, the only dimension of tangible contact is and profile to Customer segments gained by referring to Customer service representative's (CSR) voice, which is 34. 2 demographic differences. extremely important in any encounter with a Customer Booms and Bitner (1981) suggested 7Ps mix through telephone.

10 It is not possible for the Customer to Global Journal of Management and Business Research Volume XII Issue XVII Version I. which extended the traditional 4Ps which including 3Ps: evaluate the service level but the Customer has to Participants, Physical Evidence and process. The 7Ps of interact with other criteria. Responsiveness, reliability, marketing mix have been conducted by some assurance and empathy are all transmitted by CSR's researchers in marketing fields ( , Low and Tan, voice and are dependent on CSR's communication skills 1995; Pheng and Ming, 1997; Melewar and saunder, In another research, Upal M. (2008)30 applied 2000). Nagar and Rajan (2005) studied the Impact of SERVQUAL approach in evaluating Customer satisfaction and other operational factors utilizing cross- satisfaction in telecommunication industry in sectional data on US retail banks. Despite its Bangladesh.